Before starting his company in 2008, Clerico worked for a year in banking, and he reasons that a bank would not undervalue an IPO because if it does, it could alienate future deals with big startups such as Facebook.

Jay Yarow and Bill Clerico also discuss eBay's smart acquisition of mobile payment company Zong announced this morning, why the mobile payment is tough to get into, and how Silicon Valley has changed since the financial crash.